WSJ: Watchtower Building Sale Will Transform Dumbo

The Wall Street Journal reported that five of six properties acquired by the partnership including Jared Kushner, a 32-year-old real estate developer and technology investor, closed on Wednesday in a $375 million deal. The details of the deal was first reported in July 2013. The sixth building, 90 Sands Street, the hotel building will close in 2017. Mr. Kushner said they plan to convert the set of buildings into a hub for technology companies.

The WSJ article has some key information about the six former Jehovah’s Witness’ Watchtower Bible and Tract Society properties:

The 1.2 million-square-foot complex will be at least 50% offices, said a person familiar with the matter, with bigger and pricier spaces aimed at more mature companies than most in the neighborhood.

Mr. Kushner, chief executive of Kushner Companies, said the developers would work with the city to try to convert some area streets into pedestrian plazas. “We saw these buildings as an opportunity to really create a great campus-like environment,” Mr. Kushner said.

Rents at the tech campus would be in the mid-$50s per square foot, according to people familiar with the matter. That would make them about double the rents in the rest of Dumbo, and about $10 below rents for hip Manhattan spaces.

“We would make more money if we did the whole thing as residential, but we would have less fun,” Mr. Kushner said.

Mr. Kushner and his partners would need to rezone parts of the property they would convert to residential use, which requires approval from the local City Council member, Stephen Levin.

Recent Articles

Paper Street Real Estate LLC., a real estate brokerage headquartered in Downtown Manhattan on 85 Broad Street New York, NY 10004, has already marked how quickly they find buyers for their client’s listings. “On average, we are able to get into contract with qualified buyers by the third week of a property being on the…Read More

One of New York City’s most iconic views may soon disappear (video) [Travel+Leisure] City’s plan to fix BQE is ‘highway to Hell,’ local group says [Patch] Come see the beloved, endangered Promenade [Brooklyn Daily Eagle] Floods drench these NYC neighborhoods most, study shows [Patch] New rentals in Dumbo offer 1 month free on 13-month lease…Read More